Apple Inc. (AAPL) shares are down 0.7% in pre-market trading on Thursday after the Maxim Group analyst Nehal Chokshi has downgraded the Apple stock to sell from hold.
Nehal Chokshi expects that the company’s March-quarter revenue will come in 14 percent below the consensus estimates and that fiscal 2020 revenue will end up 6 percent below consensus figures.
The analyst wrote that,
“We expect the operating profit to fall year over year due to our below the consensus iPhone view, in spite of ongoing growth in services and wearables.”
The Maxim Group analyst also projects a deceleration in Apple’s wearables, home and accessories category in the fiscal 2021 aimed to what could be tougher the competition from a combined Alphabet Inc. (GOOG) and Fitbit Inc. (FIT). He also set a $190 price target on Apple shares, which have gained 68% so far in this year to reach a recent $264.47 point.